While the company’s UK and Ireland operations were profitable, the group’s financial performance was hampered by discounting by competitors in other regions, which hampered sales.

Currys has reduced its annual profit forecast after falling into the red during the first half of its fiscal year.

The UK-based corporation, which has more than 800 stores in addition to its online business, posted an adjusted pre-tax loss of £17 million for the six months ending on October 29, compared to a profit of £48 million for the same period a year prior.

It attributed the result to its overseas business, which is mostly headquartered on the continent, where it claimed that aggressive discounting by competitors had eroded margins and sales.

A decline in revenues within the United Kingdom and Ireland (UK&I) segment was, however, offset by cost reductions and greater gross margins.

The cost of the living problem affected the business of the entire group, with like-for-like sales falling 8% compared to the same period last year.

Alex Baldock, the chief executive officer of Currys, stated in a statement that excessive promotional activity among local competitors with excess stock was particularly detrimental to the overseas business.

It is a challenging climate, and we anticipate that it will continue.

“Nonetheless, we anticipate the pattern of improved UK&I profitability and a healthy rebound in International profitability to continue.

Our ever-improving client experience and solid Services give us confidence in our ability to increase profit margins. And we will continue to make great strides in cost-effectiveness.”

Currys stated that it now anticipates a full-year profit before taxes between £100m and £125m, a reduction from its previous guidance of £130m to £150m.

Before the trading update, shares had dropped by more than 40 percent; at the opening bell, they dropped another 7 percent.

The senior investment manager at RBC Brewin Dolphin, John Moore, stated: “Currys was always going to struggle in the immediate aftermath of the pandemic, as lockdowns artificially increased demand for its products.

“In addition, the company’s worldwide markets are undergoing fundamental changes, causing it to substantially discount; yet, the share price is down more than -40% from a year ago, reflecting most of this.

“Still, Currys demonstrates its survival bias once more. The organization is willing and able to take the required steps to weather these difficult times and maintain consumer relevance.”